| (a) Preliminary approval.
(1) Considerations. Prior to granting preliminary approval
of an eligible project, the commission will consider:
(A) the transportation need for and anticipated public
benefit of the project, including such factors as the project's potential
ability to accelerate needed transportation facilities or to reduce
financial and other burdens on the commission and the department regarding
the development, operation, and maintenance of such facilities;
(B) availability of funding from all sources;
(C) the percentage of the total project cost that is
represented by the requested financial assistance;
(D) the financial feasibility of the project;
(E) potential social, economic, and environmental impacts
of the project;
(F) the extent to which the requestor's toll collection
system or plan for a toll collection system provides interoperability;
(G) evidence of local public support; and
(H) the requestor's past experience with similar projects
and past performance working in collaboration with the department
in the development of such projects, if applicable.
(2) Project requirements. The commission may grant
preliminary approval of a project for financing if it finds that:
(A) the project is consistent with the Statewide Transportation
Plan and, if appropriate, with the metropolitan transportation plan
developed by an MPO;
(B) if the project is in a nonattainment area, the
project will be consistent with the Statewide Transportation Improvement
Program, with the conforming plan and Transportation Improvement Program
for the MPO in which the project is located (if necessary), and with
the State Implementation Plan;
(C) the project will improve the efficiency of the
state's transportation systems;
(D) the project will expand the availability of funding
for transportation projects or reduce direct state costs; and
(E) if the financial assistance is required to be repaid,
the application shows that the project and the requestor are likely
to have sufficient revenues to assure repayment of the financial assistance
according to the terms of the agreement.
(3) Authorized actions. By granting preliminary approval,
the commission authorizes the executive director to:
(A) evaluate the project's limits, scope, definition,
design, and other features, and identify any which adversely affect
the financing of the project, including EPIC;
(B) negotiate the amount, type and timing of disbursements
of financial assistance;
(C) if the financial assistance is required to be repaid,
negotiate an interest rate, a repayment schedule, collateral securing
the financial assistance, and default provisions;
(D) negotiate provisions providing, if necessary for
the project's financial feasibility, for the subordination of financial
assistance provided under this subchapter to any other debt obligations
for the project; and
(E) negotiate all other provisions necessary to complete
an agreement under this subchapter.
(4) Relevant facts. In determining the extent to which
the executive director will seek changes to the features described
in subsection (a)(3)(A) of this section, the executive director shall
consider:
(A) the requestor's past experience with similar projects;
and
(B) whether the project is intended to become part
of the state highway system or otherwise subject to the jurisdiction
of the department.
(b) Project impacts and traffic and revenue report.
(1) Prior to receiving final approval under subsection
(c) of this section for financial assistance for the construction
of a project, the requestor shall:
(A) complete a study of the social, economic, and environmental
impacts of the project and provide for public involvement in the manner
prescribed by Chapter 2, Subchapter C of this title (relating to Environmental
Review and Public Involvement For Transportation Projects); and
(B) obtain an investment grade traffic and revenue
report for the project from a nationally recognized traffic engineer.
(2) The executive director may waive the requirements
of paragraph (1)(A) or (B) of this subsection if the director determines
that the study or report is inapplicable or unnecessary due to the
nature of the requested assistance.
(c) Final approval. Subsequent to preliminary approval,
completion of negotiations, and compliance with this section, the
commission may grant final approval if it determines that:
(1) providing financial assistance will prudently provide
for the protection of public funds; and
(2) the project will provide for all reasonable and
feasible measures to avoid, minimize, or mitigate adverse environmental
impacts.
(d) Contingencies. The commission may make its preliminary
approval contingent upon the requestor making changes, performing
other acts, or establishing certain conditions necessary to provide
for the adequacy of any required repayments. The commission may make
its final approval subject to the requestor fulfilling specified conditions
precedent to the release of financial assistance under this subchapter,
which shall also be set forth in the financial assistance agreement.
The necessity and nature of such changes, acts or conditions will
be determined with consideration for the requestor's past experience
with similar projects and past performance working in collaboration
with the department in the development of such projects, especially
with regard to the requestor's previous use of the commission's financial
assistance.
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| Source Note: The provisions of this §27.54 adopted to be effective August 15, 2002, 27 TexReg 7178; amended to be effective March 18, 2004, 29 TexReg 2745; amended to be effective May 16, 2018, 43 TexReg 3122 |
